COMPULSORY THRIFT.

Timaru Herald, Volume XL, Issue 3018, 27 May 1884, Page 3

COMPULSORY THRIFT.

(All the Year Bound.) Whether or not charity should not take the form of public subscription for permanent provision, m the case of accidents to operatives, incurred m the pursuit of their daily business, is a matter admitting of much discussion. There can be no doubt, however, that if the needful assistance could be assured without spasmodic public action, it would be infinitely preferable. There is but one way m which this can be done, viz., by insurance. The Post Office and other institutions offer means to the working man by which, for a small payment, he can secure provision for his family and also for himself during temporary disablement. But the little word " can " makes all the difference. The voluntary acceptance of the advantages of insurance implies an amount of prudence and thought, and thrift which are the characteristics, not of the majority, but of the minority of men. The men who voluntarily insure against death and accidents are probably those who, m the absence of the facilities offered, would lay by something every week against a rainy day. It is to provide for the improvident and thoughtless that these large public subscriptions are so often needed. Hence has arisen one of the great questions of the day : Should the relief of improvidence be voluntary or compulsory ? It is admitted that we cannot make men sober by Act of Parliament. Is it possible to make them thrifty by Act of Parliament 1 The Germans, at any rate, seem to think it is. They are going to try it, and there are Bomo points about the Workman's Insurance Bill, which has lately passed the Reichstag, which merit our careful, consideration. It has been found that m Germany only 12J per cent of the workpeople joined voluntary benefit societies. Therefore a syatem of compulsory insurance has been instituted, and is to be introduced into all branches of industry, except m agriculture, where the existing provisions are believed to be adequate. The law will apply to all persons paid by salary or wages, m mining, shipping, manufacturing, and mechanical operations, with certain limitations m the case of managers, clerks, and persons temporarily employed. The funds of existing benefit societies are not to be interfered with, but the Government will fix the minimum and maximum assistance to bo given, Employers of labor are to contribute the funds, two-thirds of which they will collect from the men m deductions from wages, and the remaining third they will provide themselves. Both the contributions and the assistance are to bo gauged m proportion to the wages paid, and the assistance for medical attendance and maintenance while a man is unable to follow his calling will be at the rate of 50 per cent of his usual wages, beginning from the third day after his illness, and continuing, if necessary, for thirteen weeks. The Act is a provision both against sickness and accident. The funds although under Government control, are not to be centralised, but each trade may organise its own fund, or several trades may_ join. In the case of euch organisations, the trades may fix the amount of contributions by the members, but these must not, to begin with exceed 2 per cont of the wagoß. nor ever exceed 3 per cent of the wages! Nor must the assistance granted over bo reduced below the minimum fixed hy Government. The Government ohargos itself with the custody and investment of the funds, and the State is thus the insurer. No operative, however improvident, can avoid saving so much' as will guard him from destitution, and the recoipt of assistance front the funds will not interfere with his civil rights aa would the receipt of Poor Law relief. Another experiment m compulsory thrift has been

begun m Australia. The scheme m this case is that every male member of the community shall be compolled to pay, m hia youth or on attaining his majority, a sum proportionate to his ciroum3tances, but not leas thnn ten pounds, which shall be appropriated and invested by the State, m order to secure him against destitution during sickness for the remainder of his life. Neither the German nor tho Australian scheme is novol m conception. Both have been frequently proposed for this country, and have been discussed by economists and m Parliament. But m both instances tho schemes are for tho first timo going to be put to a practical teat, and the issue will be watched with the deepest interest. It has been argued that because it is incumbent on a State to compel every parent j to educate his child, thereforo it is also j incumbent on a State to compel every porsou to make provision for the future. There is, however, no analogy between compulsory education and compulsory thrift. The State must recognise tho evident duty of every man to provide for his offspring, and it is proper that it should interfere to compel him. It is proper for a State to insist on compliance with regulations to prevent the spread of disease, and it is proper for a State to insist on the members of a community supporting its friendless paupers.